AUDUSD Elliott Wave
For the last few days the AUD/USD pair has been trading upwards, just like we expected, impulsive wave 5 (coloured green) of the C wave (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe sideways movement between the 0.9136 and 0.9184 level. Therefore, during the New York session this major currency did not manage to stay between this levels and price has pushed to the new high at 0.9195 level. At the moment the AUD/USD pair is trading around 0.9181 level and we expect to see the price higher for the next few sessions. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 0.9315 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 0.9120 level as stop loss.
Support and Resistance
(S3) 0.9008 (S2) 0.9073 (S1) 0.9120 (PP) 0.9185 (R1) 0.9232 (R2) 0.9297 (R3) 0.9344
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 0.9180 with stop loss at 0.9120 and take profit at 0.9315 are recommended.
